SALT LAKE CITY--(BUSINESS WIRE)--BSD Medical Corporation (NASDAQ:BSDM) (the “Company” or “BSD”) announced
today that on August 8, 2014, it received a letter from the NASDAQ OMX
GROUP (“Nasdaq”) stating that the bid price of the Company’s common
stock for the last 30 consecutive trading days had closed below the
minimum $1.00 per share required for continued listing under Listing
Rule 5550(a)(2).

The Nasdaq notification letter does not result in the immediate
delisting of the Company’s common stock, and the stock will continue to
trade uninterrupted on the The Nasdaq Capital Market under the symbol
“BSDM.”

BSD management intends to resolve the situation to allow for continued
listing on The Nasdaq Capital Market.

BSD is provided a grace period of 180-calendar days, or until February
4, 2015, to regain compliance with the minimum bid price requirement. If
at any time during the 180-day grace period, the minimum closing bid
price per share of the Company’s common stock closes at or above $1.00
for a minimum of ten consecutive business days, BSD will regain
compliance and the matter will be closed. In the event the Company does
not regain compliance within this grace period, it may be eligible to
receive an additional 180-day grace period; provided that BSD meets the
continued listing requirement for market value of publicly held shares
and all other initial listing standards for The Nasdaq Capital Market,
with the exception of the minimum bid price requirement, and provides
written notice of its intention to cure the minimum bid price deficiency
during the second 180-day grace period, by effecting a reverse stock
split, if necessary. If it appears to the Nasdaq staff that the Company
will not be able to cure the deficiency or if the Company is not
otherwise eligible for the additional grace period, the Company’s common
stock will be subject to delisting by Nasdaq.

About BSD Medical Corporation

BSD Medical Corporation develops, manufactures, markets and services
systems to treat cancer and benign diseases using heat therapy, which is
delivered using focused radiofrequency (RF) and microwave energy. BSD’s
product lines include both hyperthermia and ablation treatment systems.
BSD’s hyperthermia cancer treatment systems, which have been in use for
several years in the United States, Europe and Asia, are used to treat
certain tumors with heat (hyperthermia) while increasing the
effectiveness of other therapies such as radiation therapy. BSD’s
microwave ablation system has been developed as a stand-alone therapy to
employ precision-guided microwave energy to ablate (destroy) soft
tissue. The Company has developed extensive intellectual property,
multiple products in the market and established distribution in the
United States, Europe and Asia. Certain of the Company’s products have
received regulatory approvals and clearances in the United States,
Europe and China. For further information visit BSD Medical’s website at www.BSDMedical.com.

This press release may be deemed to contain forward-looking statements,
including forward-looking statements about the intention of the
management of the Company to allow for the continued listing of the
Company’s common stock on The Nasdaq Capital Market. Forward-looking
statements are subject to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Readers are cautioned that
these forward-looking statements are only predictions and may differ
materially from actual future events or results due to a variety of
factors, including, among other things, actions that could be taken by
members of the Nasdaq staff and any exercise of discretion by members of
the Nasdaq staff with respect to compliance by the Company with the
Nasdaq Listing Rules, the general direction of stock prices in the
United States and in the Company’s industry, the demand for the
Company’s products, the ability of the Company to produce the products
to meet the demand, global economic conditions and uncertainties in the
geopolitical environment, and other risk factors set forth in the
Company’s most recent reports on Form 10-K and Form 10-Q. Any
forward-looking statements in this release are based on limited
information currently available to the Company, which is subject to
change, and the Company will not necessarily update the information.